Question

jules buys two cheeseburgers today for $15. the inflation rate over the next year is 7%. how much more money will jules need to buy two cheeseburgers in a year?
$1.05
$2.10
$0.95
$1.50

Explanation:

Step1: Calculate the increased amount

The formula to find the amount of increase due to inflation is $A = P\times r$, where $P$ is the present - value and $r$ is the inflation rate. Here, $P = 15$ and $r=0.07$.
$A=15\times0.07$

Step2: Compute the result

$15\times0.07 = 1.05$

Answer:

A. $1.05$